Long-delayed Tax Treaty 2009 Clears a Hurdle

Long-delayed Tax Treaty 2009 Clears a Hurdle

A US Senate panel approves the tax treaty from 2009 with Switzerland and seven other international tax treaties as Reuters reports.

This new tax treaty already ratified by the Swiss parliament in 2012 allows administrative assistance in the matter of tax evasion. In the previous agreement dating back to 1996, suspicion of tax fraud was a prerequisite.

This new tax treaty allows the US to request administrative assistance for more US-related bank accounts. Many Category 2 banks of the US Tax Program already received requests under the 1996 agreement. Once the new treaty is ratified the reach of play for the US becomes broader.

Now a further two-thirds vote is needed by the 100-member US Senate in order for the treaty to be ratified.

US Senator Rand Paul, a member of the committee, is the reason why the treaty was blocked in the past. He objected to these agreements because the inter-governmental sharing of financial information on citizens appears to him as intrusive from a privacy viewpoint.

The pact was approved by unanimous voice vote when Rand Paul was absent in Washington apparently due to the same day presidential contender debate in Milwaukee.